The 10-second takeaway
For the quarter ended June 30 (Q2), Black Diamond missed slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share expanded.
Gross margins improved, operating margins contracted, net margins dropped.
Black Diamond booked revenue of $31.9 million. The six analysts polled by S&P Capital IQ expected to see a top line of $32.4 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $28.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.04. The five earnings estimates compiled by S&P Capital IQ predicted -$0.03 per share. GAAP EPS were -$0.06 for Q2 against -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.1%, 20 basis points better than the prior-year quarter. Operating margin was -6.2%, 300 basis points worse than the prior-year quarter. Net margin was -6.0%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $53.0 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $177.2 million.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 19 members out of 22 rating the stock outperform, and three members rating it underperform. Among five CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Black Diamond a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Black Diamond is buy, with an average price target of $11.42.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.